on ‎2008 May 28 10:17 AM
Request clarification before answering.
Electronic Data Interchange (EDI) is a way to electronically exchange business documents, such as purchase orders and invoices, between companies.
Electronic Data Interchange is the computer-to-computer exchange of routine business data between trading partners in standard data formats. This definition contains 3 key concepts about EDI:
1)Computer-to-computer: EDI in its most efficient form flows directly out of a senderu2019s computer system directly into a receiveru2019s computer system without any human intervention; however, it is not always possible for EDI to flow in this most efficient manner.
2)Routing business data: EDI is used for routine business documents like Purchase Orders and Invoices. It is not used for non-routine business documents like complicated contracts or information meant for humans to read and analyze.
3)Standard data formats: A standard definition of the location and structure of the data is provided. Unstructured text is not EDI.
Process of EDI
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1) A buyer completes an electronic purchase order form (PO).
2) The buyer sends the purchase order electronically to the vendor.
3) The purchase order is now on the network and awaits retrieval from the vendor.
4) Once the purchase order is retrieved, the vendor's computer generates an Acknowledgment that the PO was received.
5)The Acknowledgment is now on the network and awaits retrieval from the buyer.
6)The vendor has the PO and the buyer has acknowledgment that it was received.
http://www.tradanet.intnet.mu/EDIintro.htm
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